April 3, 2017
Capacity expansion slashes China vitamin A by 30% in three quarters
An eFeedLink Exclusive
After soaring by as much as 230% in 2016, vitamin A prices have been on decline since last May. As of end of March this year, prices have fallen over 30%, from its peak of RMB300/kg, to around RMB 290/kg.
Although the high technical requirement of vitamin A production has helped to prevent too many players entering the industry, the expansion of capacity by veteran manufacturers including global producer BASF, Zhejiang NHU, Zhejiang Pharmeceutical has resulted in stronger competition.
Additionally, the shortage problem of citral, which was the main cause of 2016 H1's rally, has been resolved and supplies have been stable.
Going forward, vitamin A market is expected to stay weak amid ample availability.
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